2023-05-24 08:52Financial Performance - Total revenue for Q1 2023 was RMB 994.2 million (USD 144.8 million), an increase of 33.8% compared to RMB 743.2 million in Q1 2022[6] - Net loss for Q1 2023 was RMB 179.0 million (USD 26.1 million), a reduction of 70.9% from the same period in 2022[6] - Adjusted net loss (non-GAAP) for Q1 2023 was RMB 120.2 million (USD 17.5 million), narrowing by 67.3% year-over-year[6] - Operating loss decreased by 66.6% from RMB 648.2 million in the same period of 2022 to RMB 216.7 million (USD 31.6 million)[8] - Adjusted operating loss (non-GAAP) decreased by 60.7% from RMB 400.7 million in the same period of 2022 to RMB 157.3 million (USD 22.9 million)[8] - Net loss decreased by 70.9% from RMB 614.3 million in the same period of 2022 to RMB 179.0 million (USD 26.1 million)[8] - Adjusted net loss (non-GAAP) decreased by 67.3% from RMB 367.4 million in the same period of 2022 to RMB 120.2 million (USD 17.5 million)[8] - Diluted net loss per American Depositary Share (ADS) was RMB 0.30 (USD 0.04), compared to RMB 1.02 in the same period of 2022[8] User Metrics - Average monthly active users (MAUs) reached 102.4 million in Q1 2023, up from 101.6 million in Q1 2022[6] - Average monthly subscription members increased by 116.0% year-over-year to 14.9 million in Q1 2023[6] Revenue Breakdown - Paid membership revenue grew by 105.2% year-over-year to RMB 454.8 million (USD 66.2 million) in Q1 2023[7] - Vocational training revenue surged by 170.6% year-over-year to RMB 107.0 million (USD 15.6 million) in Q1 2023[7] - Gross profit for Q1 2023 was RMB 512.2 million (USD 74.6 million), a 52.7% increase from RMB 335.5 million in Q1 2022[7] - Gross margin improved to 51.5% in Q1 2023, up from 45.1% in the same period last year[7] Cash Flow and Assets - Operating cash flow was RMB 59.9 million in Q1 2023, marking the first positive operating cash flow since the company's IPO[6] - As of March 31, 2023, cash and cash equivalents, time deposits, and short-term investments amounted to RMB 6,257.7 million (USD 911.2 million), slightly down from RMB 6,261.5 million as of December 31, 2022[8] - Total assets as of March 31, 2023, were RMB 1,107,665 thousand, compared to RMB 7,656,239 thousand as of December 31, 2022, indicating a decrease of approximately 85.5%[18] - Total liabilities as of March 31, 2023, were RMB 302,149 thousand, an increase from RMB 1,961,971 thousand as of December 31, 2022, reflecting an increase of approximately 84.6%[18] - Cash and cash equivalents as of March 31, 2023, were RMB 607,491 thousand, compared to RMB 4,525,852 thousand as of December 31, 2022, indicating a decrease of approximately 86.5%[18] Expenses - R&D expenses increased from RMB 166.5 million in the same period of 2022 to RMB 183.0 million (USD 26.6 million), primarily due to higher salaries and benefits for R&D personnel and increased investment in technological innovation[8] - General and administrative expenses decreased by 67.7% from RMB 310.6 million in the same period of 2022 to RMB 100.4 million (USD 14.6 million), mainly due to a reduction in recognized equity incentive expenses and professional service fees[8] - Research and development expenses for the three months ended March 31, 2023, were RMB 21,205 thousand, up from RMB 15,770 thousand for the same period in 2022, representing an increase of approximately 34.4%[17] - The company reported a significant increase in marketing expenses, which rose to RMB 8,758 thousand for the three months ended March 31, 2023, compared to RMB 6,472 thousand for the same period in 2022, representing an increase of approximately 35.3%[17] Share Repurchase - The company announced a share repurchase plan to buy back up to USD 100 million of Class A ordinary shares or ADS within 12 months, with approximately 6.9 million shares repurchased for a total of USD 17.8 million as of March 31, 2023[9] - The board approved the extension of the share repurchase plan until June 10, 2024, subject to shareholder approval at the upcoming annual general meeting[9]